Relief for Georgia’s property tax payers moved to the top of the legislative agenda in the House of Representatives last week.

House members adopted HB 143, which addresses the governor’s proposal to eliminate funding for the homeowner tax relief grants to local governments. The end of these grants would result in a property tax increase of approximately $300 per year for the average homeowner.

The legislation passed on Jan. 30 would require the tax relief grants to be awarded this year. This is very important because the funding was included in the budget passed last year, and county governments and school boards across the state have established their millage rates and budgets accordingly. The grants would remain in place in future years if state revenues grow by certain percentages.

Was HB 143 absolutely necessary for the state to keep its promise of tax relief this year? No, because the legislature could restore the $429 million for the homeowners’ grants through the budgeting process. Also, the federal stimulus package or a turnaround in the state’s economy could alleviate the need for the revenue trigger requirements in future years.

The legislation is important, though, because it sends a message to the governor that state government can balance the budget without breaking its word to the taxpayers and retroactively imposing a tax increase. HB 143 now goes to the Senate for its consideration.

Meanwhile, the House Ways and Means Committee favorably reported a proposed constitutional amendment, HR 1, which would limit the annual increases on the reassessment valuation of both residential and nonresidential property to three percent, or the rate of inflation, whichever is lower.

Under the proposed change, property values could be reassessed upon the sale or transfer of the property at fair market value, which would not exceed the sales price. The amendment would also ratify property tax freezes and limitations already in place in some counties.

HR 1 is similar in principle to legislation I have introduced and argued for in previous years because it addresses the “back-door” tax increases by local governments that use valuation assessment hikes to bring in more revenue without raising the millage rate. This particular proposal might need some perfecting before it reaches the House floor, but the idea of ending back-door tax increases is very important for all Georgia homeowners.

As a proposed constitutional amendment, HR 1 still must be approved by two thirds of both the House and the Senate, and then by a majority of the voters in the next general election.

While these measures represent some movement to address property taxes, unfortunately even more tax-shift-and-spend proposals that have been commonplace the past six years have been introduced this year by the governor and members of the legislative leadership, including:

•An additional $400 million in education funding shifts from the state to local schools, which will mean higher taxes for property owners.

•A 1.6 percent provider tax on the revenues of hospitals and insurance plans, driving up health care costs for the consumers.

•A $5 admission tax on patrons of adult entertainment clubs.

•A state tobacco tax increase of $1 per pack of cigarettes.

•A statewide sales tax increase for transportation.

•A regional sales tax increase for transportation.

•A $10 tax increase on annual car tags.

Once a pattern of tax increases, budget shell games and spending sprees has been established, as it has in Georgia the past several years, it apparently becomes easier to repeat year after year. Those legislators who have been voting to enable this pattern can figure out how we got here by looking in the mirror.

Most of Georgia’s budget problems are systemic in nature rather than recession-driven. Instead of addressing these issues through common sense, moderation and fiscal responsibility, this administration and ruling majority appear intent on balancing the budget by keeping their hands in the taxpayers’ pockets.

Rep. Alan Powell (D-Hartwell) represents the 29th District (Franklin, Hart and Madison counties) in the Georgia House of Representatives. Contact him at 507 Coverdell Office Building, Atlanta, GA 30334; by phone at 404-656-0202 or by e-mail at alanpowell23@hotmail.com. For more information, visitwww.alanpowell.net.

Now more than ever it is obvious we need a new approach to replace a income / property tax collection system that clearly does not work. Let's eliminate the expensive guessing game / shell game that is the property assessment / tax process and try the sales tax based, virtually impossible to evade, Fair Tax!

The only thing fair about a sales tax is that everyone pays. What is grossly unfair is that the lower paid worker pays a higher percentage of his salary in sales tax. While the higher wage earners pay less. I'm all for elimination of the property tax, but what to replace it with, I have no idea.

No he doesn't. If poor man spends less; pays less taxes. Let's nor forget that the Fair Tax would eliminate the payroll taxes so that's more money in his pocket. If the rich man spends more, he pays more taxes.

Besides, you can't make a statement that anyone pays a higher percentage of his salary under the Fair Tax, because we have never tried the Fair Tax. That's all we want to do...try it for 3 - 5 years and see how it does. We know what we have now A- doesn't work and B- you can't get much more unfair than the property tax process. If you want things to change, you have to change what you're doing. Let's try the Fair Tax. If it works, great. If it doesn't work, we can try something else or come right back to what we have now. But if we don't try anything new, we're going to keep going down the tubes and people are going to continue to lose their homes because they can't afford the property taxes.

No poor people pay more in taxes. Rich people get more tax breaks do you think a rich man carries around a million dollars in cash. If we go to a sales tax only system the rich man makes a killing he can buy everything like he still does overseas and we get stuck with the bill that's why it is rich people who are pushing this bill so hard they make more money. If they hold most of there money in stocks and bonds where they dont have to pay taxes on it. Guys like me and you keep it in the bank and pay bills and buy gas everyday and how much is our sales tax going to be I mean look we already pay what 25 cents a gallon for gas what are they going to charge us next. This bill is made to sound good to the poor but, it will not help you it will hurt you and our country. It gives the rich man and forein companys more money in ther pockets. I would rather pay my 2200 a year in property taxes than pay 5000.00 a year in sales tax.

Maybe you haven't noticed, but the property tax system is the one we have NOW and the state is going bankrupt. The reason we are proposing alternatives, such as the Fair Tax or GREAT plan is precisely because the system we have now does not work. We should at least try the Fair Tax. If it doesn't work as you say it won't, we can simply try it on an interim basis. If it doesn't work, it will be easy enough to come back to the system we have now.

The property tax is not fair at all. I make less than $20,000 / year. But, my house and land are appraised at almost $300,000. A neighbor down the road makes almost $100,000 / yr. But his house is appraised at only $175,000.

I am poor, yet I am paying almost double in taxes! How is this fair? Also, if they don't reform the property tax, my house is going to be sold at the courthouse because I can't afford the taxes. How is the govt. taking homes away from poor and average income people in any way fair or in any way helping those same poor people?

The Fair Tax is better because it spreads the tax over the entire population, not just the people who own property. Illegals who currently pay no property tax are taxed. People with 6 kids in school but who pay no property tax because they live in a mobile home have to pay taxes. Just including these elements alone will result in millions of taxpayers who are currently not paying hardly any property tax.

It's really simple...when you spread the tax over an entire population, we all pay LESS. When only a very few (property and homeowners) are paying all the taxes, we pay more, a lot more, and we encourage irresponsible behavior by all those who are currently getting a free ride at our expense.

Fair Tax is fair because everyone pays, and because everyone pays, each individual taxpayer pays LESS.

Fair Tax - Let the people vote on it - and let's give it a try!

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